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Danny HerreraDanny Herrera 

SharePoint Online with Okta and external users

Is it possible to create a user in the Okta directory only and have that user access SharePoint Online? 
We currently have to create an AD account for these external users so they can access our internal SharePoint site but we want to get away from that practice.  
Ideal scenario would be to create a new account in Okta univeral directory and assign permissions in SharePoint Online.  
Possible or not?
Matt MaherMatt Maher (Okta, Inc.)
Hi Danny, This is possible in Okta! To make sure I understand this correctly, you would like to create a user in Okta, assign them O365 and only give them access to SharePoint Online? To do this you will need to assign O365 to the user. Once you assign O365 to the user you will see a list of O365 Apps available to the user. From there you will be able to check off the SharePoint Online box and save. This will assign the user the O365 chiclet in Okta and a license to access SharePoint Online in O365.
Let me know if that is what you would like to do and if that will work for you or not.
Danny HerreraDanny Herrera
But how is SharePoint Online going to see that Okta user to assign permissions?  
Matt MaherMatt Maher (Okta, Inc.)
When a user is assigned the SharePoint Online license in Okta, Okta will automatically provision the Sharepoint license to O365.
The user will then be able to access SharePoint Online through Okta and no further setup is required on the O365 side. Application provisioning is required in Okta to push users and attributes to service providers such as O365.